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PT Solid Gold Berjangka | Gold Little Changed with US Inflation on Tap

01:30 11 September in Commodity, Gold, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP
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GOLD SOLID GOLD BERJANGKA, SG BERJANGKA , SOLID GROUP, PT SGB , SGB

Solid Gold Berjangka | Gold prices were little changed on Tuesday as investors exercised caution ahead of a key U.S. inflation reading on Wednesday that could influence the Federal Reserve’s policy decision next week.

Spot gold was steady at $2,506.59 per ounce by 1031 GMT. U.S. gold futures were little changed at $2,535.20.

The U.S. consumer price index for August is expected to have risen 0.2% on a month-on-month basis, according to a Reuters poll, unchanged from the previous month.

The Fed looks set to cut interest rates at its meeting next week, with further cuts likely to boost ETF (exchange-traded fund) inflows and drive gold to $2,600/oz by year-end, UBS analyst Giovanni Staunovo said.

Markets are currently pricing in a 73% chance of a 25 basis point U.S. rate cut on Sept. 18, and a 27% chance of a 50 bps cut, the CME FedWatch tool showed.

Zero-yield bullion tends to be a preferred investment amid lower interest rates.Spot silver rose 0.2% to $28.39 per ounce.

Platinum gained 0.5% to $942.75 and palladium was up by 1.2% to $958.25.A surge in sales of hybrid cars as electric vehicle take-up slows is set to provide an unexpected boost to demand for platinum group metals in the coming years.

Source : Reuters